EOC AWARDS KEPPEL SHIPYARD S$104M CONTRACT TO CONVERT FPSO

 Converted vessel will be deployed for Chim Sao oil development in Vietnam  Vessel output up to 50,000 barrels a day; production due to start in 2Q11  Global demand for FPSOs continues to grow as oil prices firm up SINGAPORE, 10 December 2009 EOC Limited (EOC or the Group), an Asian-based provider of offshore oil and gas support services, has awarded Keppel Shipyard Limited (Keppel Shipyard), a subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), a S$104 million contract to convert a floating production, storage and offloading (FPSO) unit. Under this contract, Keppel Shipyard will convert a 168,000 deadweight tonne (dwt) Suezmax oil tanker into an FPSO unit that can produce up to 50,000 barrels of oil per day and have a storage capacity of about 680,000 barrels of oil. The unit will be leased to Premier Oil Vietnam Offshore B.V. (Premier Oil) for the development of the Chim Sao field, as part of the US$1 billion contract that the Group clinched in October. Mr Lim Kwee Keong, EOC’s Chief Executive Officer, said: “We selected Keppel Shipyard because our emphasis has always been on not just meeting our clients’ expectations, but exceeding them. We have enjoyed a fruitful partnership with Keppel Shipyard, who executed our first FPSO project successfully and safely. We look to continue our relationship with Keppel Shipyard as we execute our plans for growing our number of premium FPSOs in the region.” This FPSO conversion is the second that the Group has awarded Keppel Shipyard; the first was for the Lewek Arunothai. The conversion will include refurbishment and life extension works; accommodation upgrades; the fabrication and installation of topside modules and a turret mooring system, a flare tower, a helideck and pipe racks; tank coating work; structural steel additions; and new piping systems. It will also feature an internal turret designed by EOC’s associate company, London Marine Consultants(LMC). Under the Chim Sao contract, the converted vessel will be tied to Premier Oil for up to 12 years. The project is worth up to US$527 million for the primary term of six years, and up to another US$477 million if all of the six one-year options are exercised. EOC will be operating the FPSO unit with a Vietnamese partner to perform oil and natural gas liquids processing as well as water injection at the field. Production is expected to begin in the second quarter of 2011. On prospects for the Group given the current industry outlook, Mr Lim said: “We expect to see growing demand for FPSOs globally as oil prices remain firm and global oil majors look to increase their capital expenditure. In addition, we continue to see a steady stream of enquiries for our other assets, such as the Lewek Champion, our heavy-lift pipelay vessel, which we expect to be fully deployed over the medium term.”